MLO SAFE NMLS SAFE TEST FULL ACTUAL PRACTICE QUESTIONS -WELL DETAILED
ANSWERS (VERIFIED EXAM)
The three functions of a direct endorser include ______________ , __________________ and
________________.
Originate, underwrite and close loans.
What is the down payment requirement on a VA guaranteed loan?
0, Zero. There is no down payment required.
The APR is also know at the _____________ rate.
Effective rate.
The term of a loan effects the APR. The longer the term the ______________ the APR.
Lower.
Business days exclude ________________ and _________________.
Sundays and Federal Holidays.
Per the TILA the three business days Right of Rescission applies to the
_____________________ of a ______________________ dwelling.
The refinance of a primary residence.
,GLBA stand for the ________________.
GRAMM-LEACH-BLILEY ACT
A "qualified" mortgage is one with points and fees not exceeding ______________% of the
loan amount, do not have terms that exceed __________________ year and do not result in
_________________ amortization.
3%, 30 years and negative amortization
On qualified mortgages, prepayment penalties are prohibited except for some
_____________ loans.
Fixed rate
With regard to a credit score, the Dodd-Frank Act amended the FCRA to require creditors to
provide the score to a consumer at $ ______________ cost.
$0, no charge
From a banks perspective, the term that describes depositors withdrawing their funds is
_______________________.
Disintermediation
,What is a 360/180 loan?
This loan would require payments as if amortized over 30 years but will become due or
balloon in 15 years.
In a fully amortizing loan the principle portion of the payment ____________________ and the
interest portion _________________.
Principle portion increases and interest portion decreases.
The name of the loan used to complete construction is a ______________________.
Gap Loan (sometimes bridge loan).
An interest only loan is also called a ________________ mortgage or ____________________
note.
Term mortgage or a straight note
The term that describes a banks gathering of funds from depositors for the sake of investing
the combined funds is ________________.
Intermediation
Regulation B is also known as __________________________.
ECOA, The Equal Credit Opportunity Act.
, Refusing to make a loan in a specific area to exclude a specific class of people is called
_________________________.
Redlining
When inquiring about the marital status, what are the only three acceptable categories?
Married, unmarried or separted
If an individual place a phone number on a Do-Not-Call list, how frequently does their entry
have to be renewed to stay active?
Never, per the Do-Not-Call Improvement Act of 2007 which amended the original
Telemarketing Sales Rule
According to FACTA, any person who regularly extends, renews or continues credit is a
______________________.
Creditor
A _________________ is someone who allows his/her name and personal details to be used
to obtain a mortgage loan for a property he/she has no intention of inhabiting.
Straw Buyer
The Red Flag Rules were created by the FTC pursuant to FACTA. They are primarily
concerned with ______________________.
ANSWERS (VERIFIED EXAM)
The three functions of a direct endorser include ______________ , __________________ and
________________.
Originate, underwrite and close loans.
What is the down payment requirement on a VA guaranteed loan?
0, Zero. There is no down payment required.
The APR is also know at the _____________ rate.
Effective rate.
The term of a loan effects the APR. The longer the term the ______________ the APR.
Lower.
Business days exclude ________________ and _________________.
Sundays and Federal Holidays.
Per the TILA the three business days Right of Rescission applies to the
_____________________ of a ______________________ dwelling.
The refinance of a primary residence.
,GLBA stand for the ________________.
GRAMM-LEACH-BLILEY ACT
A "qualified" mortgage is one with points and fees not exceeding ______________% of the
loan amount, do not have terms that exceed __________________ year and do not result in
_________________ amortization.
3%, 30 years and negative amortization
On qualified mortgages, prepayment penalties are prohibited except for some
_____________ loans.
Fixed rate
With regard to a credit score, the Dodd-Frank Act amended the FCRA to require creditors to
provide the score to a consumer at $ ______________ cost.
$0, no charge
From a banks perspective, the term that describes depositors withdrawing their funds is
_______________________.
Disintermediation
,What is a 360/180 loan?
This loan would require payments as if amortized over 30 years but will become due or
balloon in 15 years.
In a fully amortizing loan the principle portion of the payment ____________________ and the
interest portion _________________.
Principle portion increases and interest portion decreases.
The name of the loan used to complete construction is a ______________________.
Gap Loan (sometimes bridge loan).
An interest only loan is also called a ________________ mortgage or ____________________
note.
Term mortgage or a straight note
The term that describes a banks gathering of funds from depositors for the sake of investing
the combined funds is ________________.
Intermediation
Regulation B is also known as __________________________.
ECOA, The Equal Credit Opportunity Act.
, Refusing to make a loan in a specific area to exclude a specific class of people is called
_________________________.
Redlining
When inquiring about the marital status, what are the only three acceptable categories?
Married, unmarried or separted
If an individual place a phone number on a Do-Not-Call list, how frequently does their entry
have to be renewed to stay active?
Never, per the Do-Not-Call Improvement Act of 2007 which amended the original
Telemarketing Sales Rule
According to FACTA, any person who regularly extends, renews or continues credit is a
______________________.
Creditor
A _________________ is someone who allows his/her name and personal details to be used
to obtain a mortgage loan for a property he/she has no intention of inhabiting.
Straw Buyer
The Red Flag Rules were created by the FTC pursuant to FACTA. They are primarily
concerned with ______________________.
